Results are outWell, Revenue decline is not as high as I would have suspected, coming in at -12.8%. Thats good.
Net earnings are at 10.2 million on the Quarter; Note this includes the impact of +15.5 million in wage subsidies. So in reality wajax has a -5.3 million loss.
Margins took a VERY big hit > and and there is something very 'incincere' in their news release which says.....
Gross profit margin of 16.8% in the second quarter of 2020 decreased 2.3% compared to the same period of 2019. (Note - was 19.1% in 2019) Excluding the $7.1 million CEWS recovery discussed above, gross profit margin was 14.9% in the second quarter of 2020, representing a decrease of 4.3% compared to the same period of 2019.
A 4.3% decline in from 19.1% to 14.9% is a 22.5% decrease. Very significant and they are using language which is inaccurate at best and misleading at worst.
Summary
They are actually doing better than I would have thought on the revenue front (-12.8%), but far worse on the GM front (-22.5%).
GM is what pays the bills. They've done a good job at soft selling the 22.5% reduction in the size of the business.
They are not actually profitable; Subsidy programs have kept them in the black this quarter.
GLTA !